The Authority is authorized to (a) provide funds for the acquisition of eligible loans made to students at post secondary education institutions, and (b) provide procedures for the servicing of such eligible loans in accordance with the Higher Education Act and the Education Code. The Authority’s articles of incorporation provide that after payment of expenses, debt service and the creation of reserves for the same, all revenues shall be utilized for the purchase of eligible loans, or, upon dissolution of the Authority, paid to the federal government. The Authority’s activities are governed by the Education Code, the Texas Non-Profit Corporation Act, and Section 150(d) of the Internal Revenue Code of 1986, as amended.

The Authority has no employees. Administration of the Authority’s activities is provided by Higher Education Servicing Corporation, and Phillip Wambsganss, Executive Director of Higher Education Servicing Corporation, is Executive Director of the Authority.

The Authority is governed by a Board of Directors consisting of six Directors. Three directors are appointed by the City Council of Arlington, Texas, three directors are appointed by the City Council of Denton, Texas, and one director is appointed by both. The Authority submits nominations to such Cities. Each of the City Councils of such Cities may also remove those Directors appointed by it. Directors serve two year staggered terms of office. The members of the Board of Directors serve without compensation, except for the payment of expenses incurred in connection with the business of the Authority. The Bylaws of the Authority provide for the appointment of Advisory Directors by the Board of Directors. Advisory Directors serve two year terms and are entitled to all of the rights and powers of a Board member, except that Advisory Directors may not vote nor may they hold the offices of President or Vice President. The Cities of Arlington and Denton each appoint an ex officio member to the Board whose terms are non-expiring and who have no powers or voting rights.

Authority Financing Activities 1979 to Present
The Authority began issuing bonds to acquire student loans in 1979. The Authority has issued a total of $2,258,865,000 in aggregate principal amount of bonds since 1979, $687,480,000 of which was outstanding as of April 1, 2016. The bonds previously issued by the Authority were issued under indentures separate and apart from the Indenture under which the bonds offered herby are being issued, and are not cross collateralized with the bonds offered hereby.

LIBOR Waiver & Election Form
Click here to view NTHEA's LIBOR election approval confirmation from the Department of Education.